Is $100 Billion Worth of Spending All for Naught?

Chemical companies are well prepared to take advantage of our natural gas boom, but will natural gas exports give these plans the cold shoulder?

You don't have to tell chemical manufacturers in the United States about the energy boom going on. They are all well aware, which is why, together, they have planned over $100 billion worth of expansion projects. Some are even going as far as to disassemble plants abroad and move them stateside. Both Nucor(NYSE:NUE) and Methanex Corp(NASDAQ:MEOH) targeted Louisiana as the ideal spot to relocate steel production and methanol production facilities to, respectively.

These plans don't come cheaply, which is why many, such as Dow Chemical(NYSE:DOW), have been outspoken against unchecked natural gas exports from the United States. We have already conditionally approved the exportation of up to 15% of our current demand, so further approvals could put us in a vise unless production begins to pick up again. Tune in to the short clip below for analysis on further implications for these companies.

This segment is from Tuesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.

Author

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Taylor is an Associate GM in our Fool International operations. Prior to that he covered all things Energy + Materials as an analyst. Over the years, he has built an investing skill set to rely on when evaluating companies inside and out. While at the Fool, he has made appearances on CNBC and Fox Business. In addition, he completed his MBA at the University of Maryland and will sit for the Level II CFA Exam.